Millennium Management Dominates Bitcoin ETF Landscape with $2 Billion Investment

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Millennium Management LLC enjoys unparalleled dominance in the Bitcoin ETF market. With up to $2 billion dispersed across multiple portfolios, let’s examine Millennium’s methodology to understand how it has managed to accumulate such a significant holding of Bitcoin ETFs.

Millennium’s Strategic Investments in Bitcoin ETFs

Under the leadership of billionaire Izzy Englander, Millennium Management has set a new standard for institutional investment in Bitcoin ETFs. 

As of March 31, 2024, Millennium has invested approximately $2 billion across multiple Bitcoin-related ETFs, including prominent stakes in BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund. Out of these, the largest holdings include $844 million in BlackRock’s iShares Bitcoin Trust, over $800 million in the Fidelity Wise Origin Bitcoin Fund, and $202 million in Grayscale’s Bitcoin Trust. 

Millennium has also made significant investments in the ARK/21Shares Bitcoin ETF and Bitwise’s Bitcoin ETF.

Eric Balchunas, a senior ETF analyst for Bloomberg, highlighted the scale of Millennium’s involvement on X, stating, “Millennium is king of the bitcoin ETF holders w/ about $2b across four ETFs. This is out of over 500 holders (about 200x the avg for new ETF). Majority are inv advisors (60%) but a big dose of HFs (25%).”

Industry Perspective

According to Morningstar Direct, institutional investors’ adoption of Bitcoin ETFs has dramatically increased since January, currently amounting to around $29 billion. 

While Millennium has taken the lead with its hefty $2 billion investment, Bracebridge Capital and the State of Wisconsin’s investment board have also made notable investments into this space.

Conversely, Elliott Capital and Apollo Management Holdings have disclosed smaller investments in various Bitcoin ETFs, with stakes amounting to nearly $12 million and $53.2 million, respectively.

Impact on Bitcoin’s Market Dynamics

One of the key factors contributing to Bitcoin’s significant surge this year is institutional investors’ massive influx into Bitcoin ETFs. 

Matt Hougan, Bitwise’s Chief Investment Officer, noted on X, “By the time all the filings are processed, they will show that as many as 700 institutions own $5 billion or more in the new ETFs,” expressing optimism about the growth of the Bitcoin ETF industry.

Millennium has adopted an aggressive strategy by diversifying its investments across multiple ETFs. As a result, it will enhance its exposure to potential gains and mitigate risks.